Cosco allocates P5.5-billion for 2018 expenditures

Cosco Capital Inc., the retail holding company of billionaire Lucio Co, said it budgeted P5.55 billion for 2018 capital expenditures to expand its supermarket, real estate and specialty retail businesses.

Cosco Capital said in a presentation during a recent investors briefing that it earmarked P3.65 billion for the store expansion of Puregold Price Club Inc.

It also allocated P1.5 billion for the development of community malls, P300 million to strengthen the market share of Liquigaz Corp. of the Philippines whose business is predominantly wholesale distribution of LPG.

The remaining P100 million will be allotted for the expansion of specialty realty store Office Warehouse.

It said this year’s capital expenditures would be funded by internally generated cash and untapped credit lines.

Cosco Capital said first-quarter net income went up 9.4 percent to P1.95 billion, as revenues grew 13.9 percent to P36.8 billion.

The group’s grocery retail units, Puregold and S&R Membership Shopping Club, contributed 58 percent of total profit, followed by the commercial real estate segment with 23 and liquor distribution with 14 percent.